Insurance Basics and Company Financial Statements
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Questions and Answers

What was the aim of IASB in establishing accounting standards for the insurance industry?

  • To standardize premium rates across all insurance companies
  • To exclude insurance contracts from international financial reporting standards
  • To align accounting practices for insurance with other sectors
  • To facilitate understanding of insurers’ financial statements (correct)

    • When was the Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme) launched?

  • 18 February 2017
  • 18 February 2016 (correct)
  • 18 February 2018
  • 18 February 2015

    • What is the uniform premium percentage paid by farmers for Kharif crops under the Pradhan Mantri Fasal Bima Yojana?

  • 1.5%
  • 5%
  • 3%
  • 2% (correct)

    • Why were insurance contracts excluded from the scope of international financial reporting standards?

    <p>Due to substantial differences in accounting practices for insurance</p> Signup and view all the answers

    What did Prime Minister Narendra Modi launch on 18 February 2016?

    <p>Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme)</p> Signup and view all the answers

    Insurance contracts were included in the scope of international financial reporting standards before the IASB's proposal

    <p>False</p> Signup and view all the answers

    The Pradhan Mantri Fasal Bima Yojana offers a uniform premium of 2% for all types of crops

    <p>False</p> Signup and view all the answers

    The aim of the IASB in establishing accounting standards for the insurance industry is to complicate the understanding of insurers' financial statements

    <p>False</p> Signup and view all the answers

    Accounting practices for insurance are similar to those in noninsurance financial services and nonfinancial businesses

    <p>False</p> Signup and view all the answers

    The premium for annual commercial and horticultural crops under the Pradhan Mantri Fasal Bima Yojana is 3%

    <p>False</p> Signup and view all the answers

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